EA's commented on reports that retailer GAME is facing credit insurance problems that could potentially hamper its ability to stock new releases.
"We are concerned with the financial condition of one of our major European retail partners," he said, "which could lead to both increased bad debt and lost sales."
CFO Eric Brown added: "We are focused on some isolated European retailer issues that have recently been announced. A negative outcome could adversely affect our Q4 results."
Yesterday it was claimed that GAME's financial landscape has changed "significantly since the beginning of the year" and that it's currently having to work with individual publishers to find solutions to financing issues.
An "anonymous publishing executive" said: "No credit from the agencies means no stock for the stores. It's going to get worse before it gets better. You won't find a new release this Friday."
A GAME spokesperson has claimed the stories are untrue, and that the company's currently processing Friday's releases.
Comments
26 comments so far...
WraithBringer on 2 Feb '12 said:
And if they didn't sell copies of Battlefield and FIFA like hot cakes then they wouldn't care. :/
Josh298 on 2 Feb '12 said:
looks like game are in its last days no new games in store that's very bad owell the last game i brought from their was on the dreamcast been going gamestation or cex or online game are to expensive for me
Zepf on 2 Feb '12 said:
well I used to be a really good customer of GAMEs before they got all pushy and expensive.
I wouldn't mind getting hassled walking through the door if they were cheaper than anywhere else, but full rrp for games? don't think so!
richomack360 on 2 Feb '12 said:
Goodbye game, its quite funny when the people who come into your shop know more bout the products than the staff do.
£44.99 for a new game ? No thanks, amazon or play.com get my cash (or the indi shop that used to exist in Lakeside shopping centre in Thurrock when it existed - Thatz Entertainment)
fitterthanmost on 2 Feb '12 said:
The games are too overpriced, Ive never bought from game never will
danbish on 2 Feb '12 said:
Same here. I used to spend a fortune in Game, mostly on their website (actually I'd like to know just how much I have spent in there) but over the last year or so I've been going elsewhere as they've become so expensive - you can buy the same new release for a fiver of sometimes a tenner less elsewhere and see even more of a price difference if the game you're going for has been out for quite a while. Same story with HMV. No wonder they're having troubles.
illage2 on 2 Feb '12 said:
I have to agree GAME's prices are quite steep £44.99 for a game is bulls**t. They even charge £30 for a pre-owned game. Which is pushing it.
I am not going to stop shopping at GAME though, because in the past few weeks I had some good deals on pre-owned games from there, however for new releases I'll be sticking with Amazon or Play. Like I have done with MGS HD collection.
MattSwain on 2 Feb '12 said:
Whether you shop at GAME or not I think it's bad for the UK consumer if/when it goes under. That said, if it was to hurt EA in doing so, hmmm, maybe it's not all bad! Unfortunately in the global nature of EAs business, GAMEs demise would be nothing more than a minor flesh wound to EA. They''ll probably just stick another £10 on the RRP of this years titles to compensate anyway.
Moorpheus on 2 Feb '12 said:
With EA now voicing their concern, I am beginning to worry about the status of my ME3 Collectors Edition preorder.
I wish it wasn't GAME exclusive otherwise I'd have switched my preorder weeks ago when it was still in stock in the UK.
I think once this preorder is fulfilled, I won't be preordering anymore from GAME.
KK-Headcharge78 on 2 Feb '12 said:
Well at least game can rely on consumers supporting them
billysastard on 2 Feb '12 said:
why would ea be concerned when this is exactly what they wanted?
surely the whole idea of their online piracy encouragement pass was to put sellers like game out of business by encouraging preowned buyers to simply pirate the games instead, that said game should have refused to stock online pass games in the first place thus reducing sales for the greedy companies abusing their customers.
allygray69 on 2 Feb '12 said:
sad times, think the store on Union Street Aberdeen isnt doing so well either. I have never seen a store with such bare shelves, there was hardly anything to sell in the shop.
TheLastDodo on 2 Feb '12 said:
Well I'll be popping into town tomorrow for MGS HD so I'll see for myself how bad of a state they truly are in.
Hopefully HMV and Gamestation are stocking it.
johnafirth on 2 Feb '12 said:
Gamestation are owned by GAME.
As for people not caring, GAME closing down would be a massive blow for the games industry here. Supermarkets are only any good for brand new releases, HMV are in the s**t too, and online sales are nothing like enough to cover the loss.
Oh, and I doubt ME3 will be a problem, unless they have a surprise closedown in the next month.
Toasted_PSP on 2 Feb '12 said:
EA introduced online passes into their games to combat the used market, victim one is falling and EA are upset
To be fair GAMEs own policies have lead to their demise but its a bit hypocritical of EA to complain that a shop selling used games is in trouble when they have done their very best to end the used game market.
Alienate your customers and your customer will no longer support you, GAME brought this on themselves.
MANYOO4EVA on 2 Feb '12 said:
The one thing that I've really noticed in the last year or so, is that gamers are the WORST moaners. I think we need to be grateful about how many great games we have right now, and that even more great looking games are coming out in this financially restricting time.
For me this game looks great. I played the original and sequels, but Starbreeze are great developers, just look at The Darkness and The Chronicles of Riddick: Escape from Butcher Bay. EA definately made a good choice of developer and I understand why they have gone the FPS route.
So come on people, lighten the **** up and enjoy the high quality games we have right now and those that are coming soon.
Otherwise you might as well just give up gaming right now.
jacksaddiction on 2 Feb '12 said:
Its funny to see all these people explaining why they hate Game Grp and spouting rubbish about things they really dont understand. The wonder of the internet I guess, everybody has a voice.
Im not saying they didnt bring this on themselves, but I also know it has nothing to do with the poor sods at a store level. Its the people who run the show that have driven it into the ground.
Very few of you show evidence that you realise just how industry changing the demise of the largest high street retailer within the UK will be. Game Grp are responsible for a large portion of the UK's game sales.
EA are correct to be fearful, and Im sure other companies are quietly s**tting themselves. The UK games industry is no mere ripple in the pond, its a huge income for developers and publishers the world over. Remove one of your largest distributors giving you that income.........well, its basic maths. There are many other factors to take into account, but I just dont have the time to go through them.
Basically, this is bad. Very bad. But, a sign of the future for the high street.
HMV wont have long left as movie and music sales have been a let down for years on the high street.
Are book stores next ? I recently purchased the complete Journey to the West for £30 (One large book divided into 4) and found it on the Kindle for £2.50.
It would appear that entertainment retailers on the high st will soon be extinct, but then, if you save £5 here or there, who cares if you cant walk the streets and browse a shop ?
MANYOO4EVA on 2 Feb '12 said:
Please ignore my above comment as I have posted it on the wrong article.
Duhhhhhh!!!!!!
KK-Headcharge78 on 2 Feb '12 said:
Whoa don't come in here speaking realistic sense, you'll upset the trolls
alan666 on 2 Feb '12 said:
people cancelling their orders & saying that 'this order is the last GAME will get from them! are just idiots, here is a idea for you all, when GAME do finally close down, why not go outside your local GAME store & have a party & laugh at all the people who have just lost their jobs !
some people are just to stupid to understand.
cheering & whooping about saying how you'll be glad when GAME close because the prices are to high, what do you think's going to happen to the stores ? hmmmm well ? think that a new games retailer will open up shop & start selling games a couple of pounds cheaper, or maybe a Tesco Express will open up & you can get your games from them as they are selling games as a loss leader.
*rant over
spaced73 on 2 Feb '12 said:
ha,it's online passes thats killing second hand market and the old for new trade ,cant have it all your own wayEA
kenbadguy on 2 Feb '12 said:
"here is a idea for you all, when GAME do finally close down, why not go outside your local GAME store & have a party & laugh at all the people who have just lost their jobs"!
I will my friend, believe me.
This is a company that put me in a situation of having no income with a mortgage to pay and a pregnant wife. On xmas eve too, p45 store closing, see you later.
Bunch of c***s
Jensonjet on 2 Feb '12 said:
Is this the same EA that wants to kill off the secondhand market? The same EA that specifically uses the online pass to hurt the retail trade?
Two words to them. One's 'off' the other begins with 'F'! Bunch of Cun...!
I hope EA's business suffers for this. They absolutely deserve to suffer reduced profits, loss of staff, whatever happens as a direct result of their online pass/kill-the-seconhand-market/online gaming tax.
jm3811 on 2 Feb '12 said:
Probably EA are worried that they won't be able to sell their special editions anymore. We'll have to get used to the fact that we'll have to all start our games with the same weapons. Ouch.
Imaduck on 3 Feb '12 said:
Well it's not like the EA of today would be concerned with the actual games they stocked is it?
Old Skool Gamer on 3 Feb '12 said:
Gamestation are owned by GAME.
As for people not caring, GAME closing down would be a massive blow for the games industry here. Supermarkets are only any good for brand new releases, HMV are in the s**t too, and online sales are nothing like enough to cover the loss.
Oh, and I doubt ME3 will be a problem, unless they have a surprise closedown in the next month.
Yep, if GAME go down, so do Gamestation as they are considered in financial terms one entity.
Having worked in the software business dealing with GAME in the past, the writing has been on the wall for sometime, they are overpriced and haven't kept up with the online competition like Amazon, Play.com, etc, even Gamestop are now better when it comes to in store promotions. and I'm not surprised they don't price match after hearing from people on these forums, which is crazy as its better to take a sale reduced instead of nothing, you would be surprised what it costs to make a game, it will make you cry how much mark up is made by the publisher.
If they really want to to survive, they need to start from the ground up and make it a place where people will go to again, or just scrap GAME and go all Gamestation instead.